Categories
Uncategorized

Outsourcing Making Tax Digital for Income Tax (MTD IT) work – Frequently Asked Questions

Making Tax Digital for Income Tax (‘MTD IT’) will be implemented from April 2026. While most accountants understand the new requirements and are taking steps to get their Practice and clients ready, many are wondering how to find the resources needed to support clients with their new digital record keeping and HMRC online submission responsibilities.
This is where outsourcing with Unison Globus UK can help. We have prepared the following FAQs to help accountants make a successful transition to the new MTD IT world by outsourcing work.
You can find out more at the Unison Globus UK MTD IT hub.

Which clients are affected by MTD IT?

From April 2026, any individual who is a UK taxpayer with total income from self-employment or property (including foreign property) which is more than £50,000 is affected. Both sources of income contribute to the total amount HMRC will use to assess eligibility.

The threshold reduces to £30,000 from April 2027 and lowers further to £20,000 from April 2028. Income from employment or from a limited company is not part of the MTD IT regime and isn’t part of the assessed total income.

What records will my clients need to maintain?

For each qualifying business or income source, individuals must keep complete digital records of income and expenses. These records must be submitted quarterly to HMRC using compatible software, with a final annual submission by 31 January after the tax year ends. The final submission must include all sources of income for personal tax purposes.

What if my client isn’t comfortable maintaining digital records?

Accountants or agents can maintain digital records and submit information to HMRC on a client’s behalf. They will usually charge for this service and may choose to outsource the digital bookkeeping and online submission of information each quarter. Clients who are not familiar with accounting or bookkeeping software will need a lot of support to make a successful transition to the MTD IT regime.

Can I outsource the regular maintenance of client records?

Yes. The Unison Globus UK team can maintain client records in real time using cloud-based bookkeeping or accounting software. Even if clients only have manual records like bank statements or receipts, we can digitise and update these efficiently.

Can I outsource HMRC quarterly submissions?

Absolutely. When quarterly deadlines arrive, our outsourced accountants can submit client information directly using HMRC-compatible software, ensuring online submissions are accurate and timely.

How should multiple sources of income be handled?

MTD IT requires reporting of total self-employment and property income. Each source should have separate digital records, with totals submitted quarterly. We can manage this for clients with multiple trades or property income streams.

How do clients sign up for MTD IT?

Agents and accountants can register clients using HMRC’s Agent Services Account. Clients can also sign up directly via their Government Gateway account. We can assist with this process to ensure all necessary information is collected efficiently.

What information is needed to sign up?

To register, individuals will need:
  • Business name
  • Email address
  • National Insurance number
  • Business start date and registered address
  • Accounting period
  • Accounting type (cash or standard)
  • Tax year to begin using MTD IT.

We can handle client communications and data collection through your Customer Relationship Management (CRM) system, streamlining the sign-up process.

When do clients need to start using MTD IT?

Individuals will need to comply from 6 April 2026 if they:

  • Are registered for Self-Assessment
  • Have income from self-employment or property before 6 April 2025
  • Have qualifying income above the threshold of £50,000 in the 2024/25 tax year.

Can I outsource other personal tax work?

Yes. While around 2 million taxpayers will use MTD IT, another 10 million will still submit Self-Assessment tax returns in the usual way. We can help prepare these returns, maintain records, and calculate tax due.

Can outsourcing help manage workload peaks?

With the additional workload expected from MTD IT, accountants should look to outsource recurring work such as bookkeeping, VAT return preparation, year-end accounts preparation and self-assessment tax return preparation. This will free up capacity to help clients who may need additional support or complex tax advice as the MTD IT arrangements bed in.

Can I outsource MTD IT work periodically?

Yes. We offer flexible offshore accounting services billed hourly, part-time, or full-time. This allows you to clear backlogs or manage unexpected demand without hiring additional staff onshore.

How much does outsourcing MTD IT work cost?

Unison Globus UK rates for bookkeepers and qualified accountants are typically 50% less than the cost of employing aa professional based in the UK. Our prices are fixed each year and support incremental and flexible pricing models now used by most UK accountants. We offer a fixed price option designed specifically for MTD IT services, starting from just £10 per client per month. Pricing is transparent and scalable for practices of any size.

How do I find out more?

We provide a free trial of up to 10 hours of accountant time, with turnaround in 72 hours. If you’re looking to outsource services for the first time, increase margins, and help your clients meet MTD IT responsibilities, you can book a video call with one of our expert advisors or email us at [email protected].